Insight Into Action

High Risk, High Stakes: Why a 3PL Partner is Best for High Value Cargo

Duncan identifies the challenges to high value supply chains, working with you to find tailored solutions that consistently deliver added value. With twenty years' experience in the logistics industry, Duncan's career has spanned from high value retailers through to Yodel's operations for Tesco's leading e-commerce platform. At Yusen Logistics, Duncan works primarily with many of the world's biggest and most successful white goods manufacturers and wholesalers to improve their specialist handling needs. Offering advanced appliance warehousing and delivery, Duncan facilitates outsourced logistics that improve your market lead with streamlined and cost-effective solutions for supply chain management.
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When it comes to high value goods, it’s often the complete purchasing experience that provides value to your customers and your brand. Whether they’re shopping for the latest high-tech device or coveting a designer handbag, they will pay a premium for quality and expect a service worthy of the price. Therefore, when the latest trends come around your customers will want to receive their purchases in perfect condition and as fast as possible.

To ensure your supply chain meets these high customer expectations, it helps to have a logistics partner with the expertise, resources and logistics management to guarantee that your supply chain reflects your high value cargo and the quality of your products.

Without a streamlined and secure supply chain, you risk loss, product damage or delay of high value shipments which could all affect your profit and brand.

However, the harm isn’t just to your bottom line. Should product demand exceed expectations or your route to market be affected by inefficient supply lines, you could be missing the full potential of a product launch or the latest trends. Ultimately, it will be your brand’s reputation that suffers.

In fact, without a trusted logistics provider your supply chain solutions may not have the security, quality processes and visibility that properly protect your high value cargo.

If you’re feeling the pressures of these four key challenges, then it’s time to assess your supply chain management:

Where risk can be mitigated, your 3PL partner should have systems in place to ensuresecure logistics.

When it comes to high value cargo, individual pallets of product can often be worth £100,000s with shipments reaching the millions. As such, the cost of cargo theft for desirable goods and branded product can be significant.

Consumer tastes can change in the blink of an eye, often leaving the shelf life of high value consumer goods shorter than their production cycle.

According to an IDC Manufacturing Insights survey, 22% of executives believe they need greater flexibility or excess capacity in their supply chains to meet the heightened pressures of increased demand.

It’s inefficiencies across the whole supply chain that cost you valuable time. If you’re too reactive due to poor forecasting and visibility, warehousing operations may not be fully optimised to ensure short lead shipments move seamlessly when required.

Your supply chain can also stagnate if you don’t plan ahead, often leading to added pressures on the end-retailer. For example, they may face delays if products arrive without being packaged or bundled ready for point-of-sale.

Your supply won’t meet demand, however, if forecasting and inventory management isn’t up to scratch. Consequently, you might find that you don’t have enough staff with the right skills to handle your high value cargo – or transit for distribution.

The rapidly growing e-commerce market has led to a significant magnification of the challenge and cost of returns for almost all verticals. Consumers expect to be able to return product easily and conveniently, with the returns process even becoming an increasing part of the purchasing decision.

You need specialist expertise to ensure that you maximise profit rather than writing off loss. An outsourced logistics partner can be crucial, especially if they offer QC checking, remedial work or repackaging to return product quickly back to good stock.

Technical goods, for example, could be repaired or have parts cannibalised for other uses in products. Whilst you may not be able to recover full retail value of your product, improving the condition and grading of returns can still improve the recovered value significantly.

Then, a carefully considered and designed disposition process can ensure that you maximise the value available from your returns. Access to a range of UK and European disposition channels is key to protecting in-market brand damage.